IFA slams retail lamb prices
Supermarkets are taking margins as high as 100% on retail over wholesale prices, an IFA survey found.
IFA's National Sheep Committee chairman, Laurence Fallon, said the survey proved the pricing practices of the powerful supermarket groups are totally unacceptable, and geared at achieving the maximum possible margin for themselves.
“The powerful supermarkets have jumped on the price rip-off that is now so apparent across so many sectors in Ireland,” he said.
Mr Fallon said the high-price, high-profit practices of the supermarkets were turning consumers away from a natural high-quality meat such as lamb.
He pointed out that farmers are currently receiving 3.64/kg carcass weight for lamb from the meat factories. The factories then slaughter and process the carcass and lamb cuts for sale to the supermarkets. He said typical wholesale prices charged by the factories to the supermarkets are 10.00/kg for loin chops and 5.00/kg for legs.
Based on the IFA survey, supermarkets are charging consumers over twice the wholesale price, with an average price of 19.50/kg for loin chops and 11.20/kg for legs.
Mr Fallon said this is an extraordinarily high price mark-up, even accounting for retail trim, waste and packaging. He said the supermarkets could well afford to sell lamb for at least 30% less and still make very good margins.
He added: “Lower retail prices would seriously boost consumption and benefit both consumers and producers.”
